Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9781259870576
Author: Ross
Publisher: MCG
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Chapter 17, Problem 8QP

Stock Dividends [LO3] The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $61 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1 par value) $ 275,000
Capital surplus 763,000
Retained earnings 3,284,000
Total owners’ equity $4,322,000
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Fundamentals of Corporate Finance

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